Primary Coverages In Car Insurance

Your car insurance is really a package of seven primary coverages. Taken together, these coverages make up a standard auto policy. Each of these coverages has its own separate premium. Your total premium payment is the sum of these separate premiums. 

1. Bodily injury liability helps provides protection if you injured or kill someone while operating your car. It also provides for a legal defense if another party in the accident attempts to file a lawsuit against you and your personal assets.

In the case of a serious or fatal accident, you want to be sure you have enough insurance to cover a judgment against you in a lawsuit, without jeopardizing your personal assets.

Bodily injury liability covers injury to people, not your car. Therefore it's a good idea to have a uniform level of coverage for all of your cars.

2. Medical payments, no-fault or personal injury protection coverage usually pays for the medical expenses of the injured driver and anyone else in your car. 

There may also be coverage if you are injured by a vehicle as a pedestrian, which will increase the premium by a little bit.

3. Uninsured motorists coverage pays for your injuries caused by an uninsured driver or, in some states, a hit-and-run driver, in a crash where it is not your fault. In a few states, there is also uninsured motorist coverage for damage to your vehicle.

Given the large number of uninsured motorists, this is a very important car insurance coverage to have, even in states with no-fault insurance.

4. Comprehensive physical damage coverage pays for losses resulting from incidents other than collision. For example, comprehensive insurance covers damage to your car if it is stolen; or damaged by an unexpected flood, fire or animals who somehow find their way to your car. 

To keep your insurance premiums low, select as high a deductible as you feel comfortable paying out of pocket.

5. Collision coverage pays for damage to your car when your car hits, or is hit by, another vehicle or other object.

To keep your premiums low, select as large a deductible as you feel comfortable paying out of pocket. Insurance companies figure that people who don't think they will need to use the deductible too often will opt to go with a higher deductible to save on premiums. For the older cars, consider getting rid of this coverage, since colision coverage is normally limited to the cash value of your car.

6. Property damage liability protects you if your car damages someone else's property. It also provides you with legal defense if another party files a lawsuit against you. 

It is a good idea to purchase enough of this insurance to cover the amount of damage your car might do to another vehicle or object.

7. Rental car reimbursement coverage pays for renting a car if your car isn't drivable or while your car is being repaired in the mechanic shop because of a covered accident.